Jim Cramer -- Five Below's Sales, Red Hat's 'Surprise'

The drop in Red Hat (RHT) shares seems inexplicable to some investors. Red hat is down 4.5% on Wednesday despite the company topping earnings per share and revenue estimates and providing better-than-expected guidance.

Some people believe Red Hat shares trade based on cash flow, Cramer said. But he thinks the stock trades based on billings.

"I hate to count this company out, but that was a surprise to me," Cramer said on CNBC's "Mad Dash" segment about Red Hat's 10.9% billings growth this quarter, down from 14.9% last quarter. That's why the stock is down despite the tech company securing some impressive contracts, he said.